A group of securities (LSE: LAND) are income actions with a good achievement in the field of dividend enhance. In the year ended on March 31, 2025 (FY25), he declared a payment of 40.4P, 49.6% higher than for a budget year 21.

But during this period the price of the shares fell by 21%. It helped accelerate the efficiency to 7.4%, which puts it in the top six FTSE 100 Dividends payers (September 17).

However, the falling price of shares may be a sign that investors believe that shares are steep. Others can question the sustainable dividend development.

Let’s take a closer look if any of these fears is justified.

Special status

The first thing to pay attention to is that the shares are the real estate investment fund (REIT). To take advantage of certain tax benefits, REIT must pay at least 90% of income exempt from rental taxiists by dividends each year.

But this does not give any insight into his potential profit. After all, 90% Nil is worth nothing. However, in my opinion, the group will be able to enhance their earnings (and dividends) in the coming years.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice.

Varied portfolio

Many of my optimism is due to the fact that it is the owner of many high -profile real estate, including one modern shift and Liverpool. His three main divisions are offices and shops in Centrum London, shopping centers outside the capital and a residential apartment. These portfolio are valued at 6.7 billion GBP, 2.6 billion GBP and 0.8 billion GBP, respectively.

As further proof of the quality of its portfolio, when the group is lying or renewing the lease again, it is able to cause an average enhance in rent by 8%. In addition, his contracts provide for increases related to indexes. During the budget year 25, his net revenue similar to reminding was 5% higher than in the budget year24.

Despite this, the group looks underestimated.

As at March 31, 2025, he had the value of the book (accounting) 6.53 billion GBP. Currently, its market capitalization is 4.13 billion GBP. This means a 36.8%discount.

Analysts seem to agree that the company’s shares look inexpensive. They have an average 12-month price of 702.5 pence. This is almost 29% higher than today’s price of shares.

Final thoughts

However, the group remains susceptible to the higher interest rates in which we are. The higher cost of capital means that borrowing money is needed to buy more real estate and development. And he squeezes tenants’ income, which may mean that they are looking for cheaper rooms or, in extreme cases, fall.

In addition, commercial real estate sector can be sensitive to economic slowdown.

Although the economy of Great Britain seems delicate, the quality of real estate belonging to Land Securities will provide him with some protection if the situation worsens. To keep some space, he tries to keep his loan indicator to the value in “mid -1930s“.

And despite the fact that dividends are never guaranteed, I see sufficient evidence – at least in a tiny period – suggesting that this particular REIT is in good financial shape and is able to support growth in payment. I suspect that the decrease in the price of the group’s share probably reflects fears about the economy of Great Britain – and generally the commercial real estate market – instead of anything specific for securities. On this basis, I think that the value of stocks is worth.